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Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits
Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. A B 130 125 250 20 135 270 270 P1 135 120 260 Q1 135 270 270 P2 135 120 130 22 135 270 540 Calculate the first period rates of return on the following indices of the three stocks (t = 0 to t= 1): (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A market value-weighted index. Rate of return % b. An equally weighted index. Rate of return %
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